Ron Baron

Ron Baron

Last Update: 01-08-2016

Number of Stocks: 343
Number of New Stocks: 18

Total Value: $22,147 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ron Baron' s Profile & Performance

Profile

Ron Baron is the founder of Baron Capital Management. He is Co-Portfolio Manager of Baron Asset Fund and remains Portfolio Manager of the Growth and Partners Funds. Baron graduated from Bucknell University with a B.A. in Chemistry, and later attended George Washington University Law School in the evenings.

Web Page:http://www.baronfunds.com/

Investing Philosophy

Ron Baron invests primarily in small and mid-size growth companies. He likes companies with open-ended growth opportunities and defensible niches. He applies a bottom-up company research, invests for the long-term, and tries to purchase companies at what he believes are attractive prices. He invests in growth companies using a value-oriented purchase discipline. Baron ignores short-term market fluctuations when he believes the fundamental reasons for purchasing a company have not changed. He holds investments for longer than five years on average.

Total Holding History

Performance of Baron Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201410.2613.69-3.4
201347.6332.3915.2
201216.4160.4
3-Year Cumulative89.5 (23.7%/year)74.6 (20.4%/year)14.9 (3.3%/year)
2011-5.742.11-7.8
201031.5215.0616.5
5-Year Cumulative134.9 (18.6%/year)105.1 (15.5%/year)29.8 (3.1%/year)
200928.226.461.7
2008-46.67-37-9.7
200711.345.495.9
200621.5515.795.8
200514.374.919.5
10-Year Cumulative148.6 (9.5%/year)109.4 (7.7%/year)39.2 (1.8%/year)
200442.3510.8831.5
200334.9528.686.3
2002-18.07-22.14.0
2001-15.71-11.89-3.8
20004.82-9.113.9
15-Year Cumulative245.6 (8.6%/year)86.4 (4.2%/year)159.2 (4.4%/year)
199918.4221.04-2.6
199811.6828.58-16.9
199749.8833.3616.5
199616.1322.96-6.8
199536.9437.58-0.6
20-Year Cumulative989.6 (12.7%/year)554.6 (9.8%/year)435 (2.9%/year)
19944.761.323.4
199328.7810.0818.7
199216.837.629.2

Top Ranked Articles

Baron Funds Comments on Artisan Partners Asset Management Guru stock highlight
Artisan Partners Asset Management, Inc. (NYSE:APAM), an investment manager, was formed in 1994 with a “lift out” strategy to attract top investing talent. While the corporate office focuses primarily on the distribution of a variety of the investment products, the investment professionals operate independently and autonomously. This relatively unique format has resulted in strong long-term performing products and a successful sales effort as the firm has grown to approximately $100 billion in client assets. Recent underperformance of key products, however, has led the stock to sell at what we feel are attractive prices given its long-term investment returns and its distribution force. Additionally, the company has been adding new teams in credit and developing world strategies, which is penalizing near-term profitability. However, we believe these strategies have the ability to add sizable revenue streams while also diversifying the business. (Michael Baron) Read more...
Baron Funds Comments on Vail Resorts Guru stock highlight
Shares of Vail Resorts, Inc. (NYSE:MTN), an operator of ski resorts across the U.S. and Australia, increased in the fourth quarter as the company generated strong results from its first season at Perisher in Australia, as well as robust pass sales for the current ski season in the U.S. In addition, snow storms across Tahoe, Colorado, and Utah resulted in positive sentiment on the stock. The company continued to generate significant cash flow, and it has started to use it to repurchase stock. (David Baron) Read more...
Baron Funds Comments on ITC Holdings Corp Guru stock highlight
ITC Holdings Corp. (NYSE:ITC) is the nation’s largest independent transmission company. ITC’s shares rose in the fourth quarter in response to a company announcement that it is reviewing strategic alternatives to maximize value for shareholders, including a potential sale of the company. We believe ITC will be sold at a premium to the current share price. We think ITC’s stable regulatory structure, ability to earn returns on equity at the mid-to-high teens level, and above-average growth rate will appeal to buyers. (Rebecca Ellin)From Ron Baron (Trades, Portfolio)'s Growth Fund fourth quarter shareholder letter. Read more...
Baron Funds Comments on CoStar Group Guru stock highlight
Shares of CoStar Group, Inc. (NASDAQ:CSGP), a real estate information and marketing services company, contributed to fourth quarter performance. The company’s financial results beat Street expectations, particularly on margin expansion. Bookings growth was strong, with net annualized subscription bookings more than doubling versus the prior year. We believe CoStar is poised to generate accelerating organic revenue growth and significant margin expansion as it leverages the multifamily marketing investments made over the last 18 months. (Neal Rosenberg) Read more...
Baron Funds Comments on Under Armour Guru stock highlight
Shares of athletic apparel company Under Armour, Inc. (NYSE:UA) fell in the fourth quarter. While the company reported another strong quarter of top line sales growth, some macro headwinds, investments, higher costs, and a product mix shift led to a temporary slowdown in income growth. Additionally, unseasonably warm weather during the important holiday season raised concerns around softer sales and discounting. (Michael Baron) Read more...
» More Ron Baron Articles

Commentaries and Stories

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Baron Funds Comments on Inovalon Holdings Guru stock highlight
Baron Growth Fund added to its position in Inovalon Holdings, Inc. (NASDAQ:INOV), a health care data and analytics company. The foundation of the company is a proprietary data set that contains more than 9.2 billion medical events from 127 million unique patients. This data powers Inovalon’s advanced analytics, which help insurers identify gaps in care, quality, data integrity and financial performance. Clients leverage Inovalon’s intervention platforms to drive improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. More...

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Baron Funds Comments on Inovalon Holdings Guru stock highlight
Baron Growth Fund added to its position in Inovalon Holdings, Inc. (NASDAQ:INOV), a health care data and analytics company. The foundation of the company is a proprietary data set that contains more than 9.2 billion medical events from 127 million unique patients. This data powers Inovalon’s advanced analytics, which help insurers identify gaps in care, quality, data integrity and financial performance. Clients leverage Inovalon’s intervention platforms to drive improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. More...

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Baron Funds Comments on Performance Food Group Company Guru stock highlight
During the quarter, the Fund initiated a position in leading foodservice provider, Performance Food Group Company (NYSE:PFGC), which came public in October. PFG is the third largest player in the $240 billion U.S. foodservice distribution industry, supplying key ingredients and supplies to restaurants and fast casual chains. PFG’s larger competitors, namely Sysco and US Foods, have a centralized infrastructure that is set up to service larger and lower margin fast food chains and institutional accounts such as schools, prisons and hospitals. PFG, on the other hand, has pursued a more focused growth strategy targeting higher margin independent and local restaurants with an enhanced offering of proprietary brands. This strategy has enabled PFG to gain share and grow revenue faster than peers. The food-away-from-home industry that PFG distributes to is large and growing. At $600 billion, the segment has been growing at a 4% to 5% annual growth rate over the past two decades, as casual dining has expanded significantly. We believe PFG has a large market and margin opportunity and possesses competitive advantages, particularly a decentralized sales approach that helps foster More...

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Baron Funds Comments on Artisan Partners Asset Management Guru stock highlight
Artisan Partners Asset Management, Inc. (NYSE:APAM), an investment manager, was formed in 1994 with a “lift out” strategy to attract top investing talent. While the corporate office focuses primarily on the distribution of a variety of the investment products, the investment professionals operate independently and autonomously. This relatively unique format has resulted in strong long-term performing products and a successful sales effort as the firm has grown to approximately $100 billion in client assets. Recent underperformance of key products, however, has led the stock to sell at what we feel are attractive prices given its long-term investment returns and its distribution force. Additionally, the company has been adding new teams in credit and developing world strategies, which is penalizing near-term profitability. However, we believe these strategies have the ability to add sizable revenue streams while also diversifying the business. (Michael Baron) More...

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Baron Funds Comments on Community Health Systems Guru stock highlight
Shares of hospital operator Community Health Systems, Inc. (NYSE:CYH) fell in the fourth quarter on an earnings miss driven by lower volumes and deteriorating payor mix. Concerns that the Affordable Care Act tailwind is largely over and leveraged companies will be hurt by rising interest rates also brought out sellers. We think the spinoff of Quorum Health will create value, HMA synergies will exceed initial guidance, record numbers of recruited doctors will boost admissions, more states will expand Medicaid, and deleveraging will strengthen the balance sheet. (Susan Robbins) More...

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Baron Funds Comments on Dick’s Sporting Goods Guru stock highlight
Shares of the leading sporting goods retailer Dick’s Sporting Goods, Inc. (NYSE:DKS) fell in the fourth quarter on reports of a weak third quarter and lowered guidance for the key holiday season. Unseasonably warm weather also impacted results. While we feel that demand for sporting goods is strong, consumers are seeking deals and discounts and migrating incremental purchases to e-commerce where Dick’s locations and merchandise are not as competitively advantaged. Dick’s e-commerce business is strong, its high margin private label opportunity is large, its chance to expand its very profitable stores is good, and a larger competitor is doing so poorly it may close stores. Dick’s is very attractively priced. (Michael Baron) More...

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Baron Funds Comments on Under Armour Guru stock highlight
Shares of athletic apparel company Under Armour, Inc. (NYSE:UA) fell in the fourth quarter. While the company reported another strong quarter of top line sales growth, some macro headwinds, investments, higher costs, and a product mix shift led to a temporary slowdown in income growth. Additionally, unseasonably warm weather during the important holiday season raised concerns around softer sales and discounting. (Michael Baron) More...

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Baron Funds Comments on CoStar Group Guru stock highlight
Shares of CoStar Group, Inc. (NASDAQ:CSGP), a real estate information and marketing services company, contributed to fourth quarter performance. The company’s financial results beat Street expectations, particularly on margin expansion. Bookings growth was strong, with net annualized subscription bookings more than doubling versus the prior year. We believe CoStar is poised to generate accelerating organic revenue growth and significant margin expansion as it leverages the multifamily marketing investments made over the last 18 months. (Neal Rosenberg) More...

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Baron Funds Comments on ITC Holdings Corp Guru stock highlight
ITC Holdings Corp. (NYSE:ITC) is the nation’s largest independent transmission company. ITC’s shares rose in the fourth quarter in response to a company announcement that it is reviewing strategic alternatives to maximize value for shareholders, including a potential sale of the company. We believe ITC will be sold at a premium to the current share price. We think ITC’s stable regulatory structure, ability to earn returns on equity at the mid-to-high teens level, and above-average growth rate will appeal to buyers. (Rebecca Ellin)From Ron Baron (Trades, Portfolio)'s Growth Fund fourth quarter shareholder letter. More...

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Baron Funds Comments on Vail Resorts Guru stock highlight
Shares of Vail Resorts, Inc. (NYSE:MTN), an operator of ski resorts across the U.S. and Australia, increased in the fourth quarter as the company generated strong results from its first season at Perisher in Australia, as well as robust pass sales for the current ski season in the U.S. In addition, snow storms across Tahoe, Colorado, and Utah resulted in positive sentiment on the stock. The company continued to generate significant cash flow, and it has started to use it to repurchase stock. (David Baron) More...

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Ron Baron's 4th Quarter Investor Letter and Speech, 'Question Everything' Baron discusses investing, holdings and outlook in depth Ron Baron - Ron Baron's 4th Quarter Investor Letter And Speech, 'Question Everything'
Review and Outlook More...

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Ron Baron Responds to Market's Volatile Start to 2016 'Stay calm and stay the course,' Baron says Ron Baron - Ron Baron Responds To Market's Volatile Start To 2016
We’ve been getting a lot of inquiries lately regarding the market’s unusually volatile start to 2016. My response is simple. Stay calm and stay the course. Here’s why. The factors that seemed to have provoked the latest selloff – fears of a China slowdown and various geopolitical crises – haven’t fundamentally changed the overall investment landscape. Yes, China growth is moderating but this is not news. It is to be expected as China transitions from a capital-intensive infrastructure- driven economy to a more consumer- and service- oriented economy. And we will always have geopolitical crises of one stripe or another, but history has shown that the majority of these crises have little to no impact on the long-term performance of our markets. History has a lot to teach us. As you may know, I have been an analyst since 1970 – more than 45 years! I believe this experience gives me a perspective that is different than most investment professionals. Over the course of my career, I have witnessed numerous bear markets, corrections, flash crashes, etc. I’ve probably lived – and invested – through every form of down market except one caused by a major depression, though we came close in 2007-09. For instance: 1973-74 A Middle East crisis drove oil prices sharply higher, kicking off a lengthy recession 1980-82 The Fed raised interest rates to 20%, pushing the economy into recession 1987 Computerized “program trading” strategies flooded the market, resulting in the Black Monday crash on October 19 2000-02 The dot-com bubble burst 2007-09 The burst of the housing bubble set off a chain reaction that exposed major structural cracks in the financial system. The credit crunch that followed turned a downturn into the worst recession in 80 years. These bear markets lasted from 3 months (Black Monday) to 30 months (Internet bubble burst). Each bear was followed by a much longer bull run. There have always been many reasons NOT to invest in stocks. The only reason TO invest in stocks is that, over the long term, stocks have always gone up – and outpaced the rate of inflation. In 1960, the S&P 500 was 60. Today, it’s 1,860. While the global markets sell off, the U.S. economy is in good shape and has been getting stronger. Unemployment is down and wages are (finally!) starting to increase. Business loans are up, which is good news for capital expenditures. M&A activity is at a record high. Interest rates are near historic lows, and we think they will remain low for at least the next several years. Over the past year, low oil prices have cut into profits of energy companies and businesses that service them, which has impacted the markets. But we think these energy savings will soon begin to show themselves as consumers and energy-intensive businesses take these savings and deploy them elsewhere. When less experienced investors are panicking, seasoned investors see opportunities. This is what’s happening now. We are seeing some incredible opportunities to purchase what we think are high quality growth stocks at attractive prices. We have an amazing country and we are confident that the stock market will recover. It always has. Past performance is no guarantee of future results. Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus and summary prospectuses contain this and other information about the Funds. You may obtain them from the Funds’ distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing. The discussion of market trends and companies throughout this report are not intended as advice to any person regarding the advisability of investing in any particular security. Some of our comments are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time of the publication of this report and are subject to change any time based on market and other conditions, and we have no obligation to update them. More...

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Baron Funds Comments on athenahealth Guru stock highlight
There is no truth to the rumor that we bought shares of athenahealth, Inc. (NASDAQ:ATHN) after watching its CEO, Jonathan Bush (yes, that Bush) administer CPR on the street to a distressed passerby and saving his life on TV. We bought the shares a few weeks prior to that but admit it was one of the coolest things and we are proud to invest with Jonathan. Athena provides cloud-based business services for physicians and other health care providers. The company’s flagship offering, athenaCollector, automates and manages billing-related functions for medical practices. Other offerings include a cloud-based electronic health service, patient engagement and communication service, and population health management service. We believe athena’s offering is unique. Clients operate on a single web-based version of athena’s software and benefit from real-time updates and the collective experience of other clients. This contrasts with traditional, onpremise software, which requires expensive installations and upgrades. The result is that athenaCollector clients experience faster reimbursement from payors and increased collections. Athena’s other service offerings help health care providers operate More...

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Baron Funds Comments on Under Armour Guru stock highlight
We have been waiting for an opportunity to invest in Under Armour, Inc. (NYSE:UA) for a long time. Owned by many Baron Funds since the company’s IPO in 2005, the stock never quite fit our valuation parameters. With the stock pulling back significantly in the fourth quarter we finally decided to start building a position. We believe that UA is the brand of the “next” generation. The company’s innovative and technically advanced products resonate particularly well with the millennials and recent successes of the likes of Jordan Spieth and Stephen Curry, UA’s brand ambassadors, should lead to share gain opportunities for years to come. The international business is just getting off the ground in many countries and the company is rapidly building its own distribution channel in many of the key geographies. We think additional optionality exists should UA succeed in becoming a hub for health and fitness through its “Connected Fitness” initiative. More...

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Baron Funds Comments on Allergan Guru stock highlight
Allergan plc (NYSE:AGN) is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing brand, generic and biosimilar products. Probably best known for its Botox, Allergan has undergone a massive, M&A driven transformation after combinations with Forest Labs ($25 billion) and Actavis ($66 billion) have created a $120 billion behemoth. In the process, the company has upgraded its quality of earnings and diversified away from legacy dermatology and ophthalmology businesses. Our analysis suggested that Allergan’s earnings could rise from about $15/share this year, to about $25/share in five years making it attractive enough to initiate a small position. Late in the fourth quarter, Pfizer made a long speculated cash and stock bid to acquire Allergan at about a 20% premium to its price. So-called “tax inversion” is one of the goals analysts believe Pfizer was after in attempting to acquire Allergan, and various U.S. politicians have spoken out about the need to try and prevent these kinds of transactions. We believe Allergan should do well regardless of whether this deal will go through or not (although, we think that it will) as the More...

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Baron Funds Comments on Twitter Guru stock highlight
After reporting strong 2014 results and an upbeat outlook, shares of Twitter, Inc. (NYSE:TWTR) rose 40% in the first quarter of the year. Well… it turned out the upbeat outlook was premature, as slower user growth and management’s apparent inability to execute on what most investors perceived as fairly low hanging fruit resulted in a loss of momentum, investor confidence and a continued decline in the price of the stock for the rest of the year. Jack Dorsey, the original inventor and founder of Twitter, was brought back in the hopes of rekindling the spirit of innovation and reinvigorating user growth and engagement on the platform. It appears that there is no quick fix and that getting Twitter back on track may take some time. Having said that, we continue to believe that Twitter is a unique and valuable communications platform for all major events unfolding live, in real time, around the world. It is still in the early stages of monetization and evolution as a platform, and we believe they will figure it out. More...

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Baron Funds Comments on Tallgrass Energy Partners Guru stock highlight
Shares of Tallgrass Energy Partners GP, LP (NYSE:TEGP), the general partner of a midstream energy master limited partnership declined 22% during the fourth quarter as the broad MLP/GP market experienced selling pressure due to lower growth forecasts and tax-loss-selling as a result of slumping oil and gas prices. Tallgrass belongs to a group of high-growth, high-multiple stocks which saw even more selling pressure. Though we think Tallgrass has the ability to grow fast for a prolonged period time, we chose to exit this investment. More...

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Baron Funds Comments on SunEdison Guru stock highlight
Shares of SunEdison, Inc. (NYSE:SUNE), the world’s largest renewable energy developer, collapsed during the quarter as investors lost confidence in its business model and liquidity position. We believe management’s credibility was increasingly impaired as the steps taken proved completely inadequate and we liquidated our position. More...

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Baron Funds Comments on VMware Guru stock highlight
Shares of VMware, Inc. (NYSE:VMW), one of the largest software infrastructure vendors in the world, continued to fall in the fourth quarter, declining 28%. The company is majority owned and controlled by EMC Corporation. During the quarter, EMC and Dell Inc. finalized EMC’s acquisition by Dell, which means that VMware will become a Dell-controlled company. Confusing messaging around the shift in business model under the new owner sent the stock to what we believe is a significant discount to VMw’s intrinsic value. After selling a significant portion of our position during the fourth quarter, we decided to pause thinking that sooner or later the market will appreciate the cash flow generation potential of this company and we will get a more gracious exit. More...

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Baron Funds Comments on FireEye Guru stock highlight
FireEye, Inc. (NASDAQ:FEYE) is the next generation network security company that pioneered Advanced Persistent Threat Protection. The shares fell 35% after the company reported disappointing third quarter results and reduced guidance for next quarter’s revenue growth. Several executive departures did little to instill investor confidence. It seems that FireEye is shifting its approach from incident driven sales to a more holistic risk mitigation solution, which may or may not work in the short term. It seems to us, that despite ebbs and flows, cyberattacks are here to stay and we believe that FireEye has the best post-breach incident response service, which minimizes remediation time and damage. This service consistently gets FireEye in the door and gives them an opportunity to introduce and sell their other security products, potentially allowing them to build a real cybersecurity platform of the future. More...

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Francesca turner
ReplyFrancesca turner - 1 year ago
why is illumina performing so badly and do you still own it?

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